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Bungendore IGA sale to tap retail investment demand

A brand new IGA supermarket, which recently opened in the NSW town of Bungendore, has been listed for sale.

Located approximately 40km from Canberra, the freestanding supermarket is located on a 7,636sqm site and anchored by a =15-year lease to Metcash Limited, trading as IGA.

The supermarket, which opened earlier this year, spans 1,916sqm and includes ancillary liquor and on-site customer car parking for 114 vehicles.

CBRE’s Justin Dowers, Nick Willis and Mark Nicholls have been appointed to market the brand-new freestanding supermarket property via a public Expressions of Interest campaign closing Thursday 14th September.

Mr Dowers said the sale came amid an uplift in retail investment activity in 2017: “Retail transactional activity in New South Wales was coming from a low base in 2016 that saw stock levels 45% below 2015. This limited supply and pent up investor demand has carried into a strong first half of 2017, with approximately $250 million worth of neighborhood and freestanding supermarket sales.”

He added: “With a lower for longer lending environment, and instability in other markets, we are continuing to experience increased demand from new investors looking to enter the property market. Many investors are naturally attracted to supermarkets due to their large landholdings and secure non-discretionary nature.” Mr Dowers added

Mr Nicholls said the property’s strategic location in a high growth catchment, as well as its position on the main route from Canberra to the south coast, would underpin strong interest in the asset.

“Located in Bungendore town centre, the supermarket services a vast catchment of more than 10,500 people – and situated only 30 minutes from the nation’s capital,” Mr Nicholls said.

“The town of Bungendore and its surrounding areas such as Wamboin and Bywong, continue to experience an increase in Canberra locals moving away from the ACT. It’s only a short commute to Canberra, Queanbeyan and less than 1.5 hours to Batemans Bay, plus Bungendore has plenty to offer including several cafes, restaurants, pubs and boutique shopping.

The property, which opened as a supermarket early 2017, generates a current net income of approximately $515,000 per annum and is expected to reach over $8.5million.

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